Lithuania-based Grigeo Group announced an investment program of more than EUR 106 million for the expansion of its tissue paper business.

The bulk of the investment — over EUR 97 million — will be used to modernize and expand the Grigeo Tissue production plant in Grigiskes, Lithuania. The remaining EUR 9 million will be used to upgrade the production and infrastructure of Grigeo Tissue S.p. z o.o., a tissue paper mill in Poland.

This is the largest expansion project in the Group's history, doubling tissue production to 140,000 tonnes per year.

According to Tomas Jozonis, CEO of Grigeo Group, the realization of this investment began on July 23 this year when a contract was signed with Toscotec, a manufacturer owned by the Voith Group, for the acquisition of a new tissue paper machine, PM7.

"The market potential in the Baltics, Scandinavia and Western Europe is growing. The new paper machine alone will produce an additional 70,000 tons of paper per year - a volume that currently requires the combined work of all three machines operated by our Group," Jozonis explained. "This investment is a strategic step for us and opens a new chapter in Grigeo Group's growth story."

Jozonis noted that the new machine will be accompanied by all the modern infrastructure needed for its construction, including the building of two automatic paper base conversion lines, a pulp warehouse, and a building for the machine itself that will have a total area of more than 20,000 square meters.

PM7 will have a paper web width of 5600 mm and a design speed of up to 2100 meters per minute.

"What is particularly important is that, thanks to the advanced technology, the machine will allow a significant reduction in energy consumption, which, according to our estimates, will save around half a million euros annually and will significantly reduce GHG emissions per ton of paper produced," Jozonis added.

PM7 is scheduled to be operational in the first half of 2028.

Grigeo Group AB is the only paper and wood industry company group in Lithuania and one of the largest in the Baltic countries. The Group includes the following companies: Grigeo Hygiene UAB, Grigeo Paper Packaging UAB, Grigeo Tissue UAB, Grigeo TissueSp. z o.o., Grigeo Klaipeda AB, Grigeo Packaging UAB, Grigeo Baltwood UAB, Grigeo Recycling UAB, Grigeo Recycling SIA and Mena Pak AT.

Source: grigeo.com